It depends how you're structured. You know. One of the things we look
at with our clients why when we have an initial conversation like what is your
structure, because it, you know, boils down to your tax situation.
You know, depends on you know, if you have outside equity, or
you have investors, or you have partners. You're listening to Carrie Let's's Financial
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Financial Survival Network now more than ever, and welcome you are listening to watching
the Financial Survival Network. I'm your host, Carrie. Let's say we're already
in the second week of December. Year is almost gone. If you haven't
started thinking about your taxes, well you're late to the game. But you
better start now. And the person you're about to hear from, Chase and
Sonya, can help you do just that. Chase, great to have you
on the show, first time guest. So getting to the end of the
year, what can you do right now? Three things that will save you
taxes even though you're at the end of the year. Here, Well,
one, if you don't have a CPA, certainly get one. Two.
You know, if you're looking to make any big purchases you know in Q
one, uh you know Q two dex sure you may want to consider making
those for Section one seventy nine deduction or you know, a bonus appreciation.
And then three you know, if there's any box sales you need to make
to cover gains you know on high portfolios, that's something you might want to
look at too, just to offset any long term or short term games you
have. Okay, I'll buy that. Well, you don't have to think
too hard. I'll bet you could think of three more, couldn't you.
If you need me to, I can keep going down the list there,
Yeah, give us, give us two more, Okay, I don't want
to hacks your brain too much. Yeah, you know, certainly, you
know, I mean just from a basic level. You know, we have
a lot of conversations. People don't even have LLC set up right now,
so you know, looking at do it an ll CES Corp. If you're
a kind of one owner consultant, been making a bunch of money this year,
or you have an existing LLC and you know you've heard about an escor
relection, but you're not sure if it applies to you. That's what we
mainly focus on here is maximizing es, CORP election and tax savings. So
those are a couple of things I would recommend looking at. If you haven't
already, all right, well I'll buy it. So from your standpoint,
you're working with business owners, what do you think the three most common things
they do wrong? Besides not hiring a CPA, that'd be number one,
you know, number two just having clean books. You know, we're we're
more proactive with our clients, so we're you know, trying to look into
December thirty first, not waiting till March to get your books and then follow
return, you know, being reactive to things with our clients on a weekly,
monthly, quarterly basis. You know, we're making sure their books are
cleaned up, data entered every three business days, reconciled at the end of
the month, and we use that for taxes and tax planning. So it
comes down to like escort ownership, you know, are you paying yourself a
reasonable salary? Is it more than it needs to be. We have like
an ESCORP test to figure that out. And then retirement savings. You know,
I'm very big on trying to say while you're building your business and just
putting something away so at the end of the row, you know you have
something to fall back on, because I think Forbes Forbes says like eighty five
percent of businesses actually never sell. So you know a lot of people shouldn't
just any building wealth while they're building their business. And so that's a big
thing we try to push here is just something. But those are the things
we're looking at. You know, paying your kids, paying your spells,
kind of things you're in certainly right now, like immediately, but we try
to be more proactive throughout the year with our clients. Uh. And that's
why we keep track of the data to make sure run track for things.
Sure, Hey, so how does that work when you pay your kids?
So, I mean, you know, our our minimum age is kind of
five unless you have like a marketing reason for it. But you know,
five years old, five year olds, can you know at least clean the
office, uh, without without hand holding hopefully and but you know, have
a job description. You know you want to pay them regularly. It doesn't
really look uh, you know, kosher when you're just paying them a lump
some amount every December. But the irs if you ever get audited, so
you know, working through the summertime and then uh in the winter when they're
off would be ideal. But we we recommend contributing that money to a child
roth ira. No, it's growing tech free for the purpose of education,
medical expenses, you know, purchase of a first home, retirement. They're
gonna have one of those four. You know, if you're already doing a
five twenty nine planning, you own a business, it makes sense to pay
your kids uh and max out the roth first and then go back to the
five twenty nine because you get a bit of a deduction. Obviously there's a
little bit of cost by a tax costs to it, but you know,
it allows to go tax free over the course, you know, over the
course of their life. So they're eighteen and some people don't decide to go
to college, they can do what they want with the money. Again,
medical expenses, purchase of a first home you prefer, retirement, you know
those stay like five twenty nine. You might get text on that money if
you don't use A for education. So that's one of the kind of things
we recommend for kids where we're doing Q four tax planning and maxing that out
for clients. And what's the maximum you can pay your kid, you know,
for I believe it's like over fourteen thousands somewhere around there. But but
we don't you know, if you're anes corp, we don't recommend paying them
that much. We're only trying to net out sixty five hundred this year to
contribute to the ROTH. Otherwise you're just wasting bike A taxes if you're a
If you're a sole proprietor and your maxim that out, then you probably shouldn't
be a sole proprietor and you probably should consider ESCORB when you look at your
entire tax situation. Okay, all right, I like it, so uh,
all right, you're giving us a lot to chew on there. All
right, as far as it's never too early to start planning for next year,
right, what are some things you should be thinking about for next year?
You know? Certainly thing we're organized, Like I said, we try
to be proactive with our clients. So if you don't already have someone you
know helping with your accounting. And you know you have making two three hundred
thousand and revenue plus we necessarily recommend doing some ongoing accounting. And I don't
know when you look at for dentire Hey, you give it us enough there,
all right? I kind of threw that one at you. We appreciate
it. Hey, So I guess in concluding here, Uh, you know,
I saw an article recently it's a ninety six percent of people, and
I guess that would include businesses because under the Supreme Court's definition, uh,
a business is a legal uh a fictitious person. Right, they pay more
taxes than they should do you think that's like accurate? Uh? And bends
how you're structured. You know, one of the things we look at with
our clients when they when we have an initial conversation like what is your structure?
Because it you know, boils down to your tech situation. You know,
ends on you know, if you have outside equity or you have investors,
or you have partners, you know, what is the split? You
know a lot of people do like husband and wife ownership in an escort,
which unless you have a pre nub and a community property state like we're in
in Texas. Doesn't make sense unless you're trying to do like woman owned business
or something. But uh, you know, because you're having to waste fight
attacks and paying both of you versus one, right, so it really boils
down to you know, structure, and that's one of the things we look
at initially. Okay, So so it's never too early to start planning.
Hey, Chase, people want to find out more about you, connect with
you on the web, and perhaps even hire you. How do you do
that? Yeah, please reach out to us and SONYACPA dot com, I
N s O G N A a PA dot com and feel like the contact
does for him. You know, we'll get somebody to you quickly as possible.
We have and we usually call people back the same day or you know,
respond back by email the same day, so business day. But you
know, we have a team here of twenty two people currently, so me
doing all the work. But you know we're happy to help from an accounting
tech perspective and be more proactive with your tax planning going forward. All right,
appreciate that if you've got a question for Chase myself, you can only
shoot me an email and the link to Chase's site will be the show notes
to this interview on Financial Survival Network dot com. Just click it. Chase
appreciate you coming on and we'll talk to you again soon. Thanks for having
me, Thanks for listening to carry Letz's Financial Survival Network, your solution to
today's trying times. For the latest, go to Financial Survivalnetwork dot com.
Financial Survival Network now more than ever,